Louisiana 2018 2018 Regular Session

Louisiana Senate Bill SB474 Comm Sub / Analysis

                    The original instrument was prepared by Martha Hess. The following digest, which
does not constitute a part of the legislative instrument, was prepared by James
Benton.
DIGEST
SB 474 Engrossed	2018 Regular Session	Colomb
Present law authorizes minor repairs, renovations, or construction of buildings or other facilities may
be undertaken by an agency without being included in the capital outlay budget, provided that the
expenditures for a fiscal year for these undertakings do not exceed $150,000 cumulatively per agency
and the expenditures are first approved by the commissioner of administration and the Joint
Legislative Committee on the Budget. Provides that the term "cost" shall not be construed to include
design fees or movable equipment.
Proposed law retains present law but increases the authorization to allow state agencies to purchase
land, buildings, or other facilities outside of the capital outlay process.  Proposed law also increases
the exemption threshold from $150,000 to $500,000, adjusted annually in accordance with the U.S.
Bureau of Labor Statistic's consumer price index for all urban consumers as published in January of
each year.  Proposed law provides that the construction to be undertaken by a state agency shall be
on property owned by the state, provided the undertakings do not exceed $500,000.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 39:128(C))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs to
the original bill
1. Changes the exemption threshold from $1,000,000 to $500,000 for minor repairs,
renovations, or construction of buildings or other facilities by a state agency on state
property.
2. Changes the threshold on allowed undertakings for purposes of benefitting from
proposed law from $1,000,000 to $500,000.
3. Deletes provisions related to professional service contracts where the estimated
construction cost exceeded $1,000,000.